KUALA LUMPUR (Sept 24): The Finance Ministry may retract the tax exemption for construction services if property developers in Malaysia fail to reduce house prices.

Speaking to reporters at the REHDA Institute CEO Series 2018 (Annual Property Developers Conference) here today, Finance Minister Lim Guan Eng said the ministry wants to focus on reducing prices of residential properties, in particular those priced at RM400,000 each and below.

"We want to see a reduction of housing prices, and we are not interested to see any additional perks (freebies, rebates, etc)," Lim said.

REHDA acknowledges with the abolishment of the Goods and Services Tax, there will be direct savings of 6% for buyers of commercial and industrial properties, REHDA president Datuk Soam Heng Choon said.

"We would want to call on all developers to pass on whatever savings to purchasers, on top of whatever discount and rebate that they are giving," Soam added.